The dollar was trading at 114.56 yen midafternoon, up from 114.10 yen late Monday in New York. The euro fell to US$1.4265 from US$1.4296.

"Most investors are now trading currencies based on global stock moves," said Keiichi Iguchi, a dealer at Resona Bank. "As long as global stocks remain healthy, players will likely keep selling the yen for a while."

When equity markets turn higher, short-term investors tend to resume risky yen carry trades, in which they borrow funds in yen to invest in higher-yielding assets denominated in other currencies.

Traders also said that growing speculation about an October rate cut by the U.S. Federal Reserve could accelerate yen sales. If the U.S. central bank cuts its key rates, a further advance in global stocks may push the yen lower.

Looking ahead, market participants are focused on U.S. economic data such as September existing home sales, due out Wednesday, and September durable goods sales, due Thursday.

In Tokyo, the Nikkei 225 average rose 0.07 percent Tuesday to close at 16,450.58 points. The Dow Jones Industrial Average gained 0.3 percent to finish at 13,566.97 overnight, rising for the first time in six days.

The dollar was mixed against other regional currencies, rising to 917.9 South Korean won from 917.00 the previous day, and to 1.4665 Singapore dollars from 1.4648. It fell to 7.7505 Hong Kong dollars from 7.7508, and to 39.692 Indian rupees from 39.70.